Intel’s rivals Taiwan Semiconductor Manufacturing Co. and Broadcom are each eyeing potential deals that would break the American chip-making icon in two, The Wall Street Journal reported.
Broadcom has been closely examining Intel’s chip-design and marketing business, according to people familiar with the matter. It has informally discussed with its advisers making a bid but would likely only do so if it finds a partner for Intel’s manufacturing business, the people said.
Nothing has been submitted to Intel, the people cautioned, and Broadcom could decide not to seek a deal.
Separately, TSMC has studied controlling some or all of Intel’s chip plants, potentially as part of an investor consortium or other structure, according to people familiar with the discussions.
Broadcom and TSMC are not working together, and all of the talks so far are preliminary and largely informal.
But the potential deals would have been unthinkable until Intel’s recent struggles made it an acquisition target. The end result could be a breakup of Intel after the American icon spent many decades dominating the business of making central processors for both personal computers and data centers.
Reuters reported: Intel’s rivals Taiwan Semiconductor Manufacturing Co and Broadcom are each eyeing potential deals that would break the U.S. chipmaking icon in two, the Wall Street Journal reported.
Broadcom has been closely examining Intel’s chip design and marketing business, the Journal reported, adding that the company had discussed a potential bid with its advisers but would likely only proceed if it found a partner for Intel’s manufacturing business.
TSMC, the world’s largest contract chipmaker, has separately studied controlling some or all of Intel’s chip plants, potentially as part of an investor consortium or other structure, the report said.
Broadcom and TSMC are not working together, and all of the talks so far are preliminary and largely informal, the Journal added.
Intel’s interim executive chairman, Frank Yeary, has been leading the discussions with possible suitors and Trump administration officials, who are concerned about the fate of a company seen as critical to national security, the report said.
The New York Times reported: Intel, a fallen Silicon Valley icon trying to restore its reputation as America’s most prominent semiconductor company, is working with the Trump administration on a plan to turn over the operation of its chip-making plants to a giant Taiwanese rival.
Over the past few months, Frank Yeary, the interim executive chairman of Intel, has spoken with administration officials and leaders of Taiwan Semiconductor Manufacturing Company about a deal that would separate Intel’s ailing manufacturing business from its semiconductor design and product business, according to four people with knowledge of the plan, who spoke on the condition of anonymity.